Dover Corp (DOV) announced the sale of its Unified Brands business to Electrolux Professional (ELPB.SE) for $244M. Unified Brands manufactures
professional cooking equipment for commercial food-service operators and is expected to generate $135M in FY21E. The acquisition is expected to close in Q1 FY21. Electrolux Professional is expected to fund the acquisition through increased debt and to maintain a net debt/EBITDA ratio of less than 2.5x. Dover Corp’s stock breached support along its 100-DMA and is trading in a flat base. It has an RS Rating of 77 and an A/D Rating of E.
Author: admin
Won Europe Today
Yesterday,
- European markets continued to trade in a choppy manner with no constructive move on any of the indices. Supply
chain issues and fears of increasing inflation weighed on markets. We maintain a cautious approach until major
indices retake their 50-DMA and the average distribution day count decreases. - The Stoxx 600 continued to find support at its 200-DMA with six distribution days as one distribution day expired
yesterday. The index pared its earlier losses to close marginally down and avoided a distribution day. On the
sectoral front, Retail, Health Care, and Basic Resources led the losses. - Among other major indices, Germany’s DAX is finding supply at its 200-DMA but on lower volume. France’s CAC
recorded a distribution day, taking the count to nine, and has a good support at its 200-DMA. The U.K.’s FTSE also
recorded a distribution day as it declined 0.23% on higher volume. - Eight of the 17 markets ended in the green and four recorded a distribution day. Market status remained unchanged
for all markets. - Actionable names in the Focus List include Intesa Sanpaolo (ISP.IT; ISP:IM) and Rentokil Initial (RTO.GB; RTO:LN).
We added Coface (COFA.FR; COFA:FP) to our Focus List and the stock is actionable as it broke out of a flat base
on strong volume.
Won Global View
The U.S. market remains in an Uptrend Under Pressure. The S&P 500 and Nasdaq traded relatively flat yesterday, remaining in
consolidation and below 50-DMA resistance (S&P 500: 4,437; Nasdaq: 14,872). The distribution day count stands at six each, with one
day set to expire on the Nasdaq tomorrow.
Won Europe Today
We released our European Weekly Summary yesterday, click here to access the report. Key points from it include:
- The Stoxx 600 gained 82bps last week but remains in an Uptrend Under Pressure with seven distribution days. The
index is currently consolidating in an eight-week flat base, trading below its 50- and 100-DMA with next support at
its 200-DMA. - Of the 17 indices we cover, three are in a Confirmed Uptrend, one in a Downtrend, and 13 in an Uptrend Under
Pressure. We upgraded Norway and Portugal to a Confirmed Uptrend and downgraded Germany to a Downtrend.
The average distribution day count has increased to 7.40. - Sector Rotation: Value continues to lead with short-term momentum accelerating among Financials and Energy
stocks. - We removed Trigano (TRI.FR; TRI:FP), Nordic Semiconductor (NOD.NO; NOD:NO), and Neste (NEST.FI;
NESTE:FH) from our Focus List last week. Actionable names in the Focus List include Intesa Sanpaolo (ISP.IT;
ISP:IM), Euronext (ENX.FR; ENX:FP), and Rentokil Initial (RTO.GB; RTO:LN). - Refer to page 4 for our European watchlist, which includes several banks, including Barclays (BARC.GB;
BARC:LN).
Won Global View
The U.S. market remains in an Uptrend Under Pressure. The S&P 500 and Nasdaq weakened into the close and continue to
consolidate below resistance at their 50-DMA (S&P 500: 4,437; Nasdaq: 14,878) but above price support at ~4,200 and ~14,200,
respectively. The distribution day count declined to five on the S&P 500 as one day fell off due to expiration but remains at seven on the
Nasdaq. One day will expire on the Nasdaq after the close.
Won Europe Today
Friday,
- European markets ended in negative territory but major markets barring Denmark avoided adding a distribution day.
We maintain a cautious view of the overall market given indices are still finding resistance at key levels including
50-DMA. Investors should focus on stocks that are trading above their key moving averages with good relative
strength. - The Stoxx 600 bounced off its 200-DMA but continued to remain more than 1% below its 50-DMA. On the sectoral
front, Auto stocks outperformed while Travel & Leisure stocks continued to underperform. The index remains in an
Uptrend Under Pressure with seven distribution days. We would upgrade the index after it retakes its 50-DMA on
good volume and on expiry of few distribution days. - Among other major indices, Germany’s DAX is in a Day two of its Rally Attempt after being downgraded to a
Downtrend last week. The index retook its 200-DMA and we would upgrade the index after a follow through day.
France’s CAC is trading above its 10- and 21-DMA but below its 50-DMA while the U.K.’s FTSE outperformed and
ended in positive. - Norway, Portugal, and Austria are in a Confirmed Uptrend, Germany is in a Downtrend while other markets are in
an Uptrend Under Pressure. - Actionable names in the Focus List include Darktrace (DARK.GB; DARK:LN), Euronext (ENX.FR; ENX:FP), and
Rentokil Initial (RTO.GB; RTO:LN).
Won Global View
The U.S. market remains in an Uptrend Under Pressure. The S&P 500 and Nasdaq are entering their sixth week of consolidation with
no real trend yet to develop. Resistance remains the 50-DMA (S&P 500: 4,438; Nasdaq: 14,880) and support is ~4,200 and ~14,200,
respectively, before the rising 200-DMA. The distribution day count stands at six and seven, respectively, with one day set to expire on the
S&P 500 and two on the Nasdaq this week.
Won Europe Today
We released our weekly Global Laggards Report yesterday (please click here to access the report). The stocks
highlighted in this report are laggards relative to their own domestic markets. We recommend that they be underweighted
as they may be vulnerable to further downside risk and underperformance. European names highlighted this week include
{Johnson Matthey (JMAT.GB; JMAT:LN), Safran (SGM.FR; SAF:FP), Buzzi Unicem (BZU.IT; BZU:IM), Burberry (BRBY.GB;
BRBY:LN), Carlsberg B (CAB.DK; CARLB:DC), Hargreaves Lansdown (HL.GB; HL/:LN), Gn Store Nord (GSN.DK;
GN:DC), The Swatch Group (UHRN.CH; UHRN:SW), Ericsson (SL@G.SE; ERICB:SS), and BT Group (BT,A.GB;
BT/A:LN)}.
Won Global View
The U.S. market remains in an Uptrend Under Pressure. The S&P 500 and Nasdaq closed below their respective 100-DMA in rising
volume, adding another distribution day. The next level of support is ~4,200 and ~14,200, respectively. The Nasdaq has now added its
fourth distribution day in a row, taking the count to five and seven, respectively, with no expiration next week.
Won Europe Today
Yesterday,
- European markets had a positive day with all major indices finding support at near-term support levels. However,
we continue to be cautious on markets as leading stocks are breaking down and distribution day count remains
elevated. We recommend avoiding adding any new risk and booking profits in extended names. - The Stoxx 600 found support at 450 price levels, albeit on lower volume. It is trading below its 100-DMA and
remains in an Uptrend Under Pressure with eight distribution days. Among sectors, Auto stocks led the gains, up
more than 1.5%. - Among other major indices, France’s CAC found resistance at its 100-DMA while Germany’s DAX is finding
resistance at 15,500 price levels. The U.K.’s FTSE 100 gained more than 1.1% to close above its 50-DMA on good
volume. - Among the 17 indices that we track in Europe, only Ireland closed in negative territory. The average distribution day
count stands at 6.58. - Darktrace (DARK.GB; DARK:LN) has turned actionable as it traced back to its pivot price level on low volume.
Earlier, the stock broke out of a stage-one cup base. Other actionable names in the Focus List include Ashtead
(AHT.GB; AHT:LN), Rentokil Initial (RTO.GB; RTO:LN), Euronext (ENX.FR; ENX:FP), and B&M European Value
Retail (BME.GB; BME:LN).
